LONDON (ShareCast) - Shopping centre developer Capital & Regional (C&R) is set to benefit from tax breaks after converting to a real estate investment trust (REIT).
C&R said it had converted to a REIT with immediate effect from Wednesday following a resolution passed at the company's general meeting on 2 December which amended its articles of association.

The REIT regime enables C&R to benefit from a zero corporation tax rate on qualifying property income and capital gains.

Chief executive Hugh Scott-Barrett said: "We have long stated our ambition to become a REIT focused on dominant community shopping centres in the UK before the end of 2014 and we are pleased to be entering the New Year having achieved that goal.

"C&R is significantly transformed from the company it was a year ago and this is the culmination of many months of hard work by the management team, which has also included acquiring full ownership of The Mall Fund, a debt restructuring, the divestment of non-core assets and the exchange of contracts for the disposal of our German joint venture.

"We can now focus fully on growing our core UK shopping centre portfolio and implementing the asset management initiatives outlined in our portfolio strategy."

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